Air Passenger Duty To Rise by 8 Per Cent From April 2012 Affecting the Caribbean holidays industry
The British chancellor, George Osborne, announced yesterday that APD would be increased by eight per cent in a double inflation rise. The rise will apply from April, 2012 and will significantly affect the price of flights for Caribbean holidays.
Despite receiving an open letter from aviation, tourism and trade unions, calling for a freeze on the APD increase, the British chancellor has decided to go ahead with the eight per cent double inflation rise on the tax.
The rise in APD will affect the price of flights coming in and going out of the UK and travellers planning Caribbean holidays will see a hike in the price of flights to the region as airlines are forced to add the hike to their fares.
The APD rise will come into effect from 1st April, 2012 and is disappointing news for tourism and aviation leaders who fought to scrap the duty completely.
"The government has repeatedly said it looks to travel and tourism as one of its key drivers of growth but instead of listening to concerns that APD is stunting this growth, not only in travel but in the wider economy too, it has chosen to significantly increase the tax burden,” stated Mark Tanzer, the Chief Executive of the Association of British Travel Agents.
Image by: *michael sweet*, on Flickr
APD was introduced in 1994 and is charged according to how far away the capital of a country is from the United Kingdom. Despite Florida and Hawaii being located further from the UK, the country’s capital New York is closer than many Caribbean capital cities, so passengers taking holidays to the Caribbean are charged more.
Last year, the British chancellor, George Osborne, announced a freeze in APD for 12 months but it seems that passengers travelling in and out of Britain are now paying for that freeze with the highest flight taxes in the world.
Osborne also confirmed in his Budget speech yesterday that the APD would rise again with the rate of inflation in April, 2013.
Image by: *michael sweet*, on Flickr
The worst hit travellers will be those planning long haul trips such as holidays in the Caribbean, the United States, the Middle East, South Africa, South America and Australia.
The cost of APD for a family of four flying to the United States or Egypt has risen from £240 to £260, and the same family taking flights to the Caribbean or South Africa, will now pay £324, compared to the previous £300.
In the open letter which was delivered to the British Chancellor prior to the Budget announcement, tourism, aviation and trade unions urged the government to scrap the duty, saying that by removing it, an additional 91,000 British jobs could be created and £4.2 billion would be added to the economy in just 12 months.
Image by: worldtraveller5, on Flickr
The news is also a blow for the Caribbean tourism industry which is only just beginning to recover from the global recession. The region’s economy heavily relies on travellers going on holidays in the Caribbean and the increased APD could see families heading to destinations that are closer to the UK or to the United States.
Talk to a specialist
Call 020 7644 1770 to speak with our award-winning travel consultants.
Opening hours 09:00 - 21:00 GMT
Popular Holidays In Caribbean and Costa Rica Browse all
Relish the timeless charms of Cuba from the comfort of Cuba’s most cutting edge hotels
- Stay at two of Cuba’s most cutting edge hotels, bursting with modern comforts
- Relish an all-inclusive beach retreat, boasting an overabundance of facilities
- Explore Havana’s charismatic, timeless and bustling streets
Discover the relaxing Varadero and sink into sublim tranquillity
- Experience the beauty of Varadero Beach where you can relax and unwind on the tranquil white sandy beaches whilst enjoying the 24-hrs All-inclusive offered at the Luxurious Iberostar Varadero
- Stay in Havana's most highly rated hotel, with an iconic location facing Central Park
- Discover Cuba whilst staying at the 2 Top rated TripAdvisor hotels in Cuba
Ideal for trendy couples - stay at a chic and sleek hotel in the heart of vibrant Havana and then Stay next to Cuba's famous Varadero beach
- Exclusive Couples offer - Welcome Cocktail, 1 hour free Wifi Access in Havana plus a bottle of wine on arrival, 30-minute massage and a Romantic Dinner in Varadero
- Blau Varadero offers something for everyone with as little or as much as you want to do on offer including a spa
- Virgin Atlantic Sale, huge reductions sale ends 28th Feb
- Be swept away by the amazing views of Havana from Capri's rooftop pool
Soak up the history and culture in Havana before a luxurious stay at one of Varadero's most stunning beachfront resorts
- Rooftop swimming pool and jacuzzi at Parque Central where you can look over the spectacular city of Havana
- Bella Vista sits on Varadero's pristine stretch of beach with 24-Hour all-inclusive services
- Endless range of facilities and activities for the perfect stay in your beachfront paradise
- Discover Havana’s timeless, charismatic and bustling streets with a Havana city tour
Combine exploring the old dimes of Havana with a refreshing beach retreat in Vardero on an unforgettable twin centre...
Take a holiday to the Caribbean resort of Cancun in Mexico. In the magnificent Moon Palace Cancun you will be perfectly...
Discover the cultural and historical treasures of Havana as you're treated to 5-star service at the Iberostar Parque...
You can enjoy all the aspects of this charming island, as the elegant eco-friendly property is located near all the...
Come to the beautiful island of Barbados and feel the magic of the Caribbean sun. Seven rejuvenating days in the...
Are you searching for an adventurous holiday filled with culture, authenticity and charm? Then why not enjoy a twin...